What Is the Total Interest on a 3-Month,9% Note for $32,000

question 133

Multiple Choice

What is the total interest on a 3-month,9% note for $32,000?

• A) $720
• B) $1,440
• C) $2,880
• D) $460

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Definitions:

Revolving Credit

A type of credit that does not have a fixed number of payments, in contrast to installment credit, often used for operating purposes.

Cash Cycle

The period between when a business pays for its inventory and when it receives cash from selling that inventory.

Acquisition Of Inventory

The process by which a company purchases goods and materials for production or resale, often affecting cash flow and operational strategy.

Sale Of Inventory

The process of selling a company's goods and products that are part of its stock to generate revenue.